Tuesday, September 10, 2024

Hospital paychecks are growing, but slower

Presented by Johnson&Johnson: The ideas and innovators shaping health care
Sep 10, 2024 View in browser
 
Future Pulse

By Daniel Payne, Carmen Paun, Ruth Reader and Erin Schumaker

Presented by 

Johnson&Johnson
FOLLOW THE MONEY

Members of hopital Nord (North Hospital) work at the care of  sick people at the emergency ward on February 3, 2012 in Marseille, southern France.

The paychecks aren't growing as fast anymore. | Anne-Christine Poujoulat/AFP via Getty Images

Hospital wage inflation is cooling, says a new report, offering a reprieve to health systems struggling to meet the demand for care.

The year-over-year wage growth for nonprofit hospital employees has slowed substantially after a sustained period in 2021 and 2022 during which it outpaced the private sector as a whole and health care outside the hospital, according to the new report from Fitch Ratings.

Hourly wage growth averaged 3 percent in 2024, compared with 4.2 percent in 2023. Hospital wage inflation peaked late in 2021 at more than 8 percent.

But hospitals still spend significantly on labor, both due to wage inflation and an increase in their workforce since 2022 to address demand for care that was put off through the pandemic. Still, worker shortages remain.

Why it matters: The imbalance between the need for health workers and the supply has been a key concern for providers for years, and it intensified through the pandemic.

The cooling wage growth noted by Fitch is a good sign for hospitals’ financial outlook and suggests the upheaval of recent years could be settling, according to the report.

Policymakers in Washington and state capitals are keenly interested in the financial viability of hospitals, the problem of facility closures, and the need for a consistent supply of clinicians to make care accessible.

 

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WELCOME TO FUTURE PULSE

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This is where we explore the ideas and innovators shaping health care.

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WASHINGTON WATCH

Rep. Nick LaLota, R-N.Y., speaks during a news conference, July 14, 2023, on Capitol Hill in Washington. LaLota is the Republican candidate in New York's 1st District.

LaLota thinks better tech can help stop the fentanyl scourge. | Patrick Semansky/AP

The House wants the Department of Homeland Security to develop artificial intelligence to help identify illicit drugs.

The demand is part of a bill — the DETECT Fentanyl and Xylazine Act of 2024 — that the House passed by voice vote Monday.

The bill also mandates DHS conduct research, development, testing and evaluation to improve equipment that can detect fentanyl, the synthetic opioid which has driven a record number of fatal overdoses in the U.S. in recent years, and xylazine, the horse tranquilizer that dealers are mixing with fentanyl to deadly effect.

This equipment includes portable devices which can detect and identify drugs with minimal or no handling and machines that can separate complex chemical mixtures containing low concentration of drugs, according to the bill.

Why it matters: The bill, if it becomes law, would empower federal law enforcement with the best technology to detect and intercept even the smallest amount of these substances, said Rep. Nick LaLota (R-N.Y.), who sponsored the bill.

“Let me be clear, this is not just about equipment and technology. This is about the lives that we have a duty to protect. It's about ensuring that a child does not lose a parent to a lethal dose of fentanyl,” he said during a debate on the House floor Monday.

LaLota, who’s in his first term representing a Long Island district, is in a contested reelection race with cable news commentator John Avlon.

What’s next? The Senate still has to vote on the companion bill by Texas Republican John Cornyn.

 

A message from Johnson&Johnson:

What does health look like to you? At J&J, we believe a healthy community is one served by health workers who are supported and thriving. We are working with partners across the country to achieve health equity and eradicate inequities & health disparities. Learn More.

 
INNOVATORS

A customer wears an Apple AirPod while waiting in line to buy the Apple iPhone 15 series device at The Grove Apple retail store on release day in Los Angeles, California, on September 22, 2023. (Photo by Patrick T. Fallon / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images)

The AirPod can now check your hearing. | AFP via Getty Images

Apple announced a series of new health technologies this week — leveraging its smart watch and ear buds.

The company is courting approval from the FDA and global health authorities for its new features.

With a software update, the Apple Watch will now be able to listen for signs of sleep apnea if worn at night. The latest update will also turn the AirPods Pro 2 into a hearing aid. The company says iPhones will soon be able to conduct a clinical grade hearing test using the ear buds. Based on the results of the test, the AirPods Pro 2 will adjust noise levels for users with mild to moderate hearing loss.

Apple expects the FDA to authorize its hearing features and sleep apnea notifications soon. It is working with other health authorities to get marketing authorization globally.

The FDA started authorizing over-the-counter hearing aids in 2022.

Why it matters: Apple is increasingly seeking out FDA authorization for its health features. The agency previously signed off on the Apple Watch atrial fibrillation detection feature.

Other companies have also developed health software for the Apple Watch. StrivePD makes an Apple Watch application for detecting Parkinson's disease that the FDA cleared in 2022.

 

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